Mandatory Audit Firm Rotation Study: Study Questionnaires, Responses, and Summary of Respondents' Comments;Report to the Congress

摘要

On November 21, 2003, we reported on mandatory audit firm rotation as required by Section 207 of the Sarbanes-Oxley Act of 2002. GAO reported that, considering the costs and benefits of mandatory audit firm rotation and the recent reforms being implemented as a result of the Sarbanes- Oxley Act of 2002, several years experience will be needed to evaluate the effects of the act. We concluded that the most prudent course of action at this time is for the Securities and Exchange Commission (SEC) and the Public Company Accounting Oversight Board (PCAOB) to monitor and evaluate the effectiveness of the Sarbanes-Oxley Acts requirements for enhancing auditor independence and audit quality. In that respect, we reported that audit committees, with their increased responsibilities under the act, can play a very important role in enhancing auditor independence and audit quality.